Why is bitcoin stuck at the $58,000 level?
The bitcoin price has fluctuated between $57,815 and $61,815 for nearly seven days, with the 50-day simple moving average (SMA) at $61,662 providing constant resistance.
As of this writing, the price of bitcoin (BTC) is at $58,106.44, down 0.2% from an hour ago and down 0.6% from yesterday. The value of BTC today is 5.2% lower than it was seven days ago.
In addition, 57,708 traders liquidated a total of $221.55 million in the last 24 hours. The highest single liquidation order came on Binance - BTCUSDT at $10.83 million.
According to Glassnode, the recent volatility in the bitcoin price can be partially attributed to “weakness in spot demand.” Glassnode calculated the current net balance of purchases and sales in the bitcoin spot market by analyzing the cumulative volume delta (CVD) to see if there is any sideways bias.
Glassnode's data shows that online “Since the ATH bitcoin price was set in March, the market has experienced a prolonged period of supply allocation involving wallets of all sizes. Over the past few weeks, this trend has shown early signs of reversing, especially for the largest size wallets, which are often associated with ETFs. These larger wallets appear to be returning to accumulation mode.”
According to Glassnode, spot market demand will resume once the adjusted CVD crosses the zero line and enters positive territory.
If that happens, BTC could emerge from consolidation, cross the $70,000 to $72,000 vendor accumulation zone and move into price discovery.
Bitcoin enters the weekend with a negative sentiment
A key bitcoin indicator is raising new concerns among crypto traders, with a bearish cross indicating that the asset may be destined for further declines, while history says this could be a good sign.
In a post dated August 15, X crypto trader under the pseudonym Mags wrote, “Bitcoin just printed a bearish cross on the daily chart.”
Mags mentioned a negative signal known as a “death cross,” which occurs when BTC's 50-day simple moving average (SMA) falls below its 200-day SMA. Mags noted that this move indicates “short-term market weakness.” Traders use this crossover to compare Bitcoin's recent strength to its overall performance.
IG market analyst Tony Sycamore told adda
, “It needs to retrace the 200-day moving average at $62,432 to stabilize and open a test of trend channel resistance around $70,000.”
